Setting up a Special Needs Trust can be complicated. At K. Reilly Law, we have the expertise to ensure the trust is set up correctly and that families don’t feel overwhelmed going through the process and their loved ones are legally protected and well taken care of.
Setting up a Special Needs Trust can be complicated. K. Reilly Law makes sure your loved ones are legally protected and well taken care of.
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A special needs trust is designed to manage assets to benefit a person with special needs while not compromising access to important government beneficiaries.
It’s an excellent planning tool for people who find themselves in this situation and want to ensure the assets will be used as intended.
Consider a Special Needs Trust when:
- The beneficiary is someone with a disability.
- Protect the beneficiary’s government benefits.
- Leaving assets to an individual by a financial gift or through a will mistakenly thinking it will not disqualify the beneficiary from government assistant programs.
A Brief Summary of Special Needs Trusts
Third-Party Trust Money is set aside in the trust for the beneficiary
A Third-Party Trust is used by persons planning in advance for a loved one with special needs. A “third-party” special needs trust (or supplemental needs trust) holds funds belonging to other people who want to help the person with special needs. Typically, parents of the individual with special needs establish the trust. The Trust can be funded during the life of the parents, grandparents or other relatives or can be funded through the will of that person.
Upon the beneficiary’s death, the third-party SNT is not required to use the remaining assets to reimburse any state(s) for the Medicaid benefits received by the beneficiary during his or her lifetime. K. Reilly Law can help you with these trusts.
First-Party -Inherited Money or Property
First-party SNTs are often used when the person with a disability has existing assets, inherits money or property outright, or receives a court settlement. These SNTs are useful when a person without a prior disability owns assets in his or her name, later becomes disabled, and after that needs to qualify for public benefits that have an income or asset limitation.
A First-Party Trust is a useful planning tool for people who want to set aside the beneficiary’s property to preserve essential public benefits during that beneficiary’s lifetime. Upon the beneficiary’s death, the trustee must reimburse any state(s) for the Medicaid benefits received by the beneficiary during his or her lifetime. K. Reilly Law does not prepare these trusts but can help you connect with a firm that can.
A Special Needs Trust is a sophisticated planning tool that requires the expertise of a lawyer who is also able to advise on details related to estate planning.
Kerry Reilly will work with the family to ensure that financial gifts (outright, in trust or through a will) are properly named and allocated to the Third-Party Trust to make sure the beneficiary’s government benefits are protected.